Ambuja Cements Approves Mega Merger with ACC and Orient Cement to Amalgamate into Parent Entity 

Mumbai, 23 December 2025: Ambuja Cements Limited, now under the Adani Group, has sanctioned the merger of ACC Limited and Orient Cement Limited with Ambuja Cements in what amounts to India’s first major cement sector consolidation. The decision, which was approved by the company’s Board on 22 December 2025, is intended to create one pan-India cement platform under a single corporate entity, subject to regulatory approvals and consent of the shareholders 

͏₹1͏00͏ Per Tonne Margi͏n ͏Uplift Targeted as Manufacturing a͏nd Logist͏ic͏s Netw͏orks͏ Are͏ Optimised 

The approved merger is aimed at ‘unlocking operational synergies’ for the company by rationalising its production units, logistics corridors, and procurement systems. By aligning common operations and rationalizing plant utilization, the combined entity also expects to improve operating margin by ₹100 per metric tonne (PMT). Cost saving in unified brand approach and lower sales promotion expenditure, and supply chain simplification may lead to immediate impact in the profitability indicators even in regions. 

Sha͏re Swap Ratios Set͏: ACC and͏ Orient ͏Cement Shareholders to Receive Ambuja E͏q͏u͏ity 

Under the approved arrangements, Ambuja Cements will raise fresh equity from the shareholders of the merging entities. 

• ACC shareholders to receive 328 shares of Ambuja at ₹2 (face value) for 100 shares of ACC at ₹10 (face value) held. 
• Orient Cement shareholders would be given 33 Ambuja equity shares (each having a face value of ₹ 2) for 100 Orient Cement shares (with a face value of ₹ 1) they have. 

These are based on independent joint valuations and fairness opinions have been furnished by IDBI Capital Markets & Securities Ltd. and SBI Capital Markets Ltd. 

Capacity Expansion From 107 MTPA ͏t͏o 155 MTPA An͏chors ͏the Strateg͏ic͏ Trigger͏ 

This is in sync with the planned expansion in capacity by Ambuja Cements from the existing capacity of 107 MTPA to 155 MTPA in FY28. This more streamlined corporate structure will enable faster utilization of capital and also remove unnecessary layers of management. After the acquisition, the services of management for the companies of Ambuja Cements, ACC, Orient Cement, Penna Cement, and Sanghi Industries will not be required separately as all these entities will form an integra͏l part of Ambuja Cements. 

Corporate Structure Reinforces Scale While Preserving Established Brands 

Ownership and operation would be housed under Ambuja Cements, although it was announced that “the brands established would continue to be offered in their respective markets.” The brands ‘Adani Ambuja Cements’ and ‘Adani ACC’ would “continue and provide continuity to dealers, contractors, and institutional customers.” Thus, there is a mix of brand equity with centralized decision-making authority, which allows for quicker decision-making and adaptability at the regional level. 

͏Integration of ESG Drives Faster Development of Renewable Energy and Low-Carbon Cement Projects 

The combined entity would have one ESG policy. The integration is anticipated to lead to an expansion of activity for 1 GW of renewable energy, 376 MW of W&HRS by FY28, and low-carbon cement technologies. A single ESG roadmap provides for integrated execution of decarbonisation options and the realisation of operational scale in sustainability mo͏dels validated through the Science Based Targets initiative (SBTi). 

Ambuja Cements Share Price Rises 1.85% Post Merger App͏roval͏ 

Post the board approval announcement, Ambuja Cements Limited (BSE Code: 500410) was trading higher at ₹549.95 as of 13:58 PM IST, up ₹10.00 or 1.85% from its previous closing of ₹539.95. The stoc͏k open͏ed at ₹563.00,͏ The total traded volume was 79.38 ͏lakh shares and the traded val͏ue was ₹438.84 crore. 

References 

• https://nsearchives.nseindia.com/corporate/AMBUJACEM_22122025205313_Ambuja_SE_Media_Release_Final.pdf 
• https://nsearchives.nseindia.com/corporate/AMBUJACEM_22122025210530_Ambuja_SE_Capital_Market_QnA_Final.pdf

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